Glossary

Some Turkish Mortgage related words may have discombobulated you, but our glossary is here to help.

The Turkish word Tapu is translated as title deed in English. This is the official document which describes the property's specific details and owners. It is also used in Turkish colloquially to refer to the Tapu Daire - see below.
The Iskan, known in English as the habitation certificate, is an official document provided by the local authority. It confirms that the property has been built to specification and within the correct boundary. Older properties (those built before 1999) will not always have this, but property built since 1999 are required by law to have an Iskan. We will sometimes need a copy of this but on most occasions it will not be requested.
The Tapu daire, sometimes referred to colloquially as just the Tapu, is a government office where land and property transactions take place. The English translation is Land registry. Unlike most countries, land and property transactions are still carried out in person at the local Tapu Daire.
An interest rate is the annual rate at which interest is charged on your loan. For instance, a 5% interest rate on a 100,000 loan will result in an annual interest repayment of 5,000. This is split over twelve months and then an amount added to also pay off the capital borrowed.
A fixed rate is where the lender fixes the interest rate charged on a loan for a certain period of time. This can be anything from one year to ten years. The advantage of this is knowing that your monthly repayments will be fixed for that period of time, making it easier to budget.
A variable interest rate is where the interest rate charged can vary on a month to month basis. The rate is usually linked to a standard like the Bank of England Base rate, LIBOR or EURIBOR, by what is known as a margin. For example, some lenders offer a rate linked to the Bank of England base rate plus a margin of 5.75%. This means the annual rate you will pay will vary in line with the Bank of England Base rate. Should it rise, your rate will rise, and should it fall, your rate will fall.
These three interest rate standards are used to set interest rates on some mortgage products and you will see it mentioned in our literature where applicable. The Bank of England base rate is the interest rate set by the UK's central bank. LIBOR is the London Interbank Offer Rate and is set by the British Bankers' Association. EURIBOR is the Euro Interbank Offered Rate. It is the averaged interest rate at which Eurozone banks offer to lend unsecured funds to one another.
The reversion rate is the interest rate a lender charges once a fixed rate has ended. It usually based on one of the above mentioned reference rates (Base rate, LIBOR, EURIBOR).
If you have taken a fixed interest rate product, the lender will usually lock you in to the fixed rate period. It does this by applying early repayment charges, should you want to redeem the mortgage before the end of the fixed rate period. Most lenders charge 2-3% of the amount you overpay. If for example, your outstanding mortgage is 50,000, and the charge is 2%, then you will be charged 1,000 to redeem your mortgage early. In some cases, lenders will allow you to overpay a mortgage by 10% of your outstanding loan each calender year without a charge. If for example, your outstanding loan is 50,000, you can overpay 5,000 per annum without paying a charge.
The term of a mortgage is the number of years or months over which the mortgage will be repaid. Terms can range from five to twenty years.
Most banks that lend will charge an arrangement fee. This is usually a flat fee or a percentage, usually 2% of the loan. Arrangement fee charges are all displayed on our rates page.
All lenders we use will want to have an independent valuation of the property made. For this reason, they send a qualified surveyor, who will charge a fee. All fees charged are displayed on our rates page.

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